Archive for the ‘June 24’ tag
Fed Watch: Bernanke Testimony Focuses on Growth, FOMC Minutes Released
Current Rate: 2.00%
Next Rate Decision: Aug. 5
Market
Expectations: The OIS implied rate suggests markets are 16% priced in for
a 25bp hike at the next meeting and are pricing in a 41%
chance of a quarter-point hike at the September meeting.
Last week was a fairly busy week for Federal Reserve news, with two
days of testimony from Chairman Ben Bernanke before the Senate Banking
Committee on Tuesday and the House of Representatives’ Committee on
Financial Services on Wednesday. Also on Wednesday, the Federal Open
Market Committee released the minutes from its June 24-25 monetary policy
meeting.
Fed Minutes Say Next Move Could Be Higher Funds Rate
The minutes of the Federal Open Market Committee’s
(FOMC) June 24-25 meeting show that FOMC Board Members agreed upside
risks to inflation had increased and generally agreed downside risks to
growth had diminished. Most members thought the current 2.00% target rate
was appropriate but that risks to inflation may initiate a
reassessment.